Understanding the Impact of Securities Fraud in West Virginia
Investment fraud can make you feel isolated, but you’re not alone. Fraudulent schemes affect many investors each year, like the more than 170 people who fell victim to real estate investment schemes allegedly carried out by “Wolf of West Virginia” Theodore Miller.
A West Virginia securities fraud attorney can help you pick up the pieces following financial misconduct and put you on the path to recovery.
West Virginia Investment Fraud Lawyer
When evaluating your case, West Virginia investment fraud lawyers will comb through your documentation for suspicious activity and potentially misleading statements in communications with your broker. Their experience with complex investment products and securities laws allows them to draw connections between your losses and your broker’s actions.
Understanding West Virginia Securities Laws
West Virginia securities laws protect investors from financial exploitation by empowering state regulators to take action against brokers and firms through sanctions, civil litigation, and criminal proceedings.
The Role of the West Virginia Uniform Securities Act
The West Virginia Uniform Securities Act provides investors with protection against fraud. It establishes civil and criminal liability for the following violations:
- Untrue statements or omissions of material fact made in relation to the purchase or sale of securities
- Fraudulent or deceitful practices in purchasing or selling securities
- Sale of unregistered securities
The West Virginia Commodities Act provides another layer of fraud protection for commodities, and defines the types of commodities transactions that are permitted in the state.
West Virginia Securities Commission Enforcement Actions
Investigations into securities fraud are carried out by the Securities Commission of the West Virginia State Auditor’s Office.
Some investigations are the result of tips provided by the West Virginia Attorney General and other regulators.
In 2022, one of these tips resulted in the Securities Commission ordering Anderson Smith and stacktradeoptions.com to cease and desist from offering or selling securities in the state. The Commission alleged that they engaged in a fraudulent cryptocurrency scheme and converted an investor’s funds for personal use.
Blue Sky Laws in West Virginia
Investors in West Virginia are protected against fraud and exploitation by the state’s blue sky laws. These laws complement the fraud provisions of federal law, and open the door to investors and state regulators pursuing action in cases of fraud.
Broker-Dealer and Investment Adviser Regulations in West Virginia
Brokers, investment adviser representatives, and their employing firms must meet certain registration requirements in West Virginia. They also have an obligation to provide you with information about investments, such as their risks, costs, features, and potential returns.
Failure to fully inform a client, misrepresenting or manipulating the facts, and other forms of misconduct can lead to fines or even the suspension or revocation of a representative’s license.
Securities Registration and Exemptions in West Virginia
In West Virginia, some securities must be registered with the state. Brokers have an obligation to provide you with documentation about prospective investments, including the product’s structure, features, limitations, expenses, and risks.
Other types of offerings, like private placements, are exempt from registration. However, these investments still require certain disclosures about their characteristics and potential risks.
Common Types of Securities Fraud in West Virginia
West Virginia securities fraud lawyers regularly investigate a wide range of deceptive and manipulative practices involving investments.
Penny Stock Schemes in WV
Penny stocks are often the target of fraudulent schemes. Because they aren’t listed on national securities exchanges, it can be difficult to find publicly-available information on the issuers of penny stocks. Fraudsters may pressure you to buy now, promise high returns, and leave you high and dry by selling all their shares once the stock price rises.
Selling Away in WV
Each brokerage firm offers a range of investments, but may choose not to offer certain products. Brokers may try to get around these rules by selling investments outside their firm—known as selling away. These private transactions may involve investments that yield high commissions for your broker but leave you unaware of the risks.
Churning in WV
If your broker recommends frequent in-and-out trading when the price of the security hasn’t changed significantly, they may be churning your account. Also known as excessive trading, this practice racks up commissions for your broker and generates trading fees for you.
Insider Trading in WV
Brokers and other financial professionals may have access to information about mergers between companies and other events that can affect the stock market. When they use that nonpublic information to inform their trades, that’s insider trading.
Elder Financial Abuse in WV
Seniors are at heightened risk for investment fraud. Scammers may use social engineering tactics and other forms of manipulation to gain access to their accounts, facilitate fund transfers, or ensnare them in fraudulent investments.
Legal Remedies for Securities Fraud Victims in West Virginia
If you believe you may have been defrauded, misled, or manipulated by your broker, it’s crucial to contact a securities attorney right away. A West Virginia securities fraud attorney can help you file complaints with regulators and lay the groundwork for your case.
Filing a Complaint
You have the following regulators at your disposal in West Virginia:
1 Securities Commission of the West Virginia State Auditor’s Office
- Online Filing: Not available.
- Documentation Required: Print, fill out, and mail a complaint form with any contracts and other supplementary documentation to WV Securities Commission, 1900 Kanawha Boulevard East, Building 1, Room W-100, Charleston, WV 25305.
- Contact Information:
Telephone: 304-558-2251
Fax: 304-558-4211
Email: fraud@wvsao.gov
2 Office of the West Virginia Attorney General, Consumer Protection Division
- Online Filing: File your complaint through the AG’s online form.
- Documentation Required: Fill out a complaint form and mail it with relevant documentation to the Office of the Attorney General, Consumer Protection Division, PO Box 1789, Charleston, WV 25326-1789.
- Contact Information:
Telephone: 304-558-8986 or 1-800-368-8808 (toll-free)
Fax: 304-558-0184
Email: complaint@wvago.gov
3 Financial Industry Regulatory Authority (FINRA)
- Online Filing: Access through FINRA’s complaint portal
- Documentation Required: Copies of all broker communications and relevant account statements
- Contact Information:
Senior helpline: 844-574-3577 (9 a.m. – 5 p.m. ET, weekdays)
Main line: 301-590-6500
Support center: Available through FINRA’s contact page
You can file complaints with these regulators simultaneously, and they may use the evidence you provide to pursue action on behalf of other investors in the future. Be sure to keep copies of all the documentation you provide and check up on your complaints regularly.
Arbitration
In arbitration, you present your case to a panel overseen by an arbitrator. FINRA arbitration typically provides a resolution in 12-18 months, making it a quicker process than civil court. In the end, the arbitrator will provide a binding decision that all parties must follow.
Mediation
Mediation allows you to negotiate with the other party and a neutral facilitator to reach a resolution. This is often the fastest form of remedy, generally resolving in several months. While mediation is less formal than other avenues, it still results in a legally-binding agreement signed by all parties.
Civil Litigation
For some investors, a civil lawsuit is the best choice for recovering losses. Civil litigation is the longest and most formal path to recovery, potentially taking years to complete, but it can result in restitution and additional damages. You also retain the right to appeal the judge’s decision.
How a West Virginia Investment Fraud Lawyer Can Help
Proving investment fraud requires extensive scrutiny of the evidence, deep knowledge of securities law, and strict adherence to specialized procedures. Your representation can take on the challenge of making your case so you can focus on your recovery.
Case Evaluation and Evidence Collection
A West Virginia securities attorney will evaluate your account statements, broker communications, promotional materials, and other documents for signs of financial misconduct. What they uncover will form the foundation for your recovery, ensuring that they’ll have a strong base of evidence to rely on when arguing your case.
Representation During Arbitration or Litigation
Your attorney will navigate the complex procedures of your chosen method of recovery, taking on the work of examining witnesses, challenging testimony by the other party, and presenting your evidence in a compelling way.
Negotiating Settlements
An experienced securities attorney can evaluate settlement opportunities and determine if they assess the full value of your claim. They can reject offers and negotiate for a higher settlement using the evidence you collected earlier.
Why Choose Kurta Law as Your West Virginia Investment Fraud Attorney?
Victims of investment fraud need representation with experience in securities litigation. Our team is familiar with the legal landscape of West Virginia and has years of combined experience pursuing recovery in cases involving a wide range of investment products.
Proven Results and Client Success Stories
At Kurta Law, we use careful research and determined advocacy to prove how deceptive and manipulative practices affected your investments. As a result of our personalized legal strategies, we’ve achieved significant recoveries in cases involving many types of misconduct.
Experts on Complex Financial Products
Our attorneys have experience identifying signs of misconduct in a variety of investment transactions, from publicly-traded stocks and mutual funds to highly complex and illiquid products like structured notes and real estate investment trusts (REITs).
Free Consultation and Contingency Fee Structure
We believe you have enough on your plate following investment fraud. That’s why we offer a free consultation to evaluate your case, and you won’t pay legal fees unless we recover money on your behalf. This gives you access to experienced legal representation and ties our success to yours.
Get Expert Guidance from a West Virginia Securities Fraud Attorney
If you’ve been misled by a broker or lost money to a fraudulent scheme, you don’t have to face the aftermath alone. Our team is here to help you fight for your rights and restore your financial stability. To learn more about the benefits of hiring a West Virginia securities fraud lawyer, we welcome you to reach out.
We are committed to guiding West Virginia investors who have been wronged by brokers or fraudulent businesses. Call us at (877) 600-0098 for a free case evaluation, or fill out our online form today.